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Accelerating SaaS adoption in the New Enterprise

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Did you know you can increase your company valuation with integration?
Securing Enterprise customers is extremely challenging, and as the competitive landscape continues to grow with best of breed SaaS applications, it will be important to consistently meet customer requirements and differentiate your service from the competition.

Join Chris Purpura GM of MuleSoft’s Cloud Integration Business as he presents key findings from the 2nd annual SaaS Connectivity report, which discusses top barriers to SaaS adoption in the new Enterprise, with recommendations for SaaS providers to address the challenge of integration and improve the top level SaaS key performance indicators (KPIs).

What you will learn:

Top barriers to SaaS adoption in the Enterprise
Overview of the New Enterprise, and what it means for SaaS providers
3 ways integration can increase your valuation as a SaaS provider
Presenter:

Chris Purpura, VP and GM of Cloud Integration at MuleSoft

Published in: Technology, Business
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Accelerating SaaS adoption in the New Enterprise

  1. 1. The Business of SaaSExecutive Webinar SeriesChris PurpuraVP and GM of Cloud IntegrationMuleSoft
  2. 2. Watch a recording of this presentation…
  3. 3. • 21 years of experience in both privateand public companies building out newmarkets and business models for enterprisemiddleware companies• Chris has held various senior executive levelpositions across marketing, productmanagement, strategy, and alliancesfunctions.Chris Purpura, VP and GM of CloudHub, MuleSoftAll contents Copyright © 2013,MuleSoft Inc.3
  4. 4. Agenda4
  5. 5. The New EnterpriseAnd what it means for SaaS ProvidersAll contents Copyright © 2013, MuleSoft Inc.
  6. 6. MuleSoft:•150K+ developer community•100+ Anypoint™ Connectors•3500+ global deployments on premises•10,000+ cloud deployments•35% of the Global 500•5 of the top 10 banksA Unique Perspective on the New Enterprise6
  7. 7. Visibility and Experience Across Industries7
  8. 8. Key Trends Impacting the Enterprise8IncreasedAdoptionEnablingtechnologySaaS Mobile Cloud APIs(You guys)Enterprise
  9. 9. SaaS vendors and Corporate IT, a new detente?9The conditions for détente are already here:SOURCE: Forrester Research’s Forrsights Software Survey, Q4 2012
  10. 10. SaaS vendors and Corporate IT, a new detente?10Within 3- 5 years, CIOs aspire to spend their time:SOURCE: 2013 State of the CIO Survey, CIO Magazine
  11. 11. Data + SaaS + Mobile = Competitive Advantage11Respond to cloud,SaaS adoption,mobile, line ofbusiness demandsSelect strategictechnology purchasesto differentiate businessto customers & driveinnovation2011 2012 2013IT focus is shifting frominternal to external customers
  12. 12. An Enterprise Business is highly fragmented12The New Enterprise
  13. 13. Integration = pain for Enterprise13Create every connection•Learn the application•Map and transform data•Code integration logic•Add security, control anderror handling•Test and debugCreate every connection•Learn the application•Map and transform data•Code integration logic•Add security, control anderror handling•Test and debugOngoing pain•Not Supportable•Flexibility of SaaS unrealized•Lack of real connectivity = cansolutionsOngoing pain•Not Supportable•Flexibility of SaaS unrealized•Lack of real connectivity = cansolutions
  14. 14. Integration = pain for SaaS vendors14YourApplicationPoint to point tools•Separate tools for separateintegration use cases•Restrictive licensing and/orfees for use•Little visibility or abilitytroubleshoot internallyPoint to point tools•Separate tools for separateintegration use cases•Restrictive licensing and/orfees for use•Little visibility or abilitytroubleshoot internallyCustom coding•Requires in house talent andapplication expertise•Little repeatability•No visibility or ability totroubleshoot issues•Higher support costsCustom coding•Requires in house talent andapplication expertise•Little repeatability•No visibility or ability totroubleshoot issues•Higher support costs
  15. 15. 2012 SaaS Integration Survey:Demographics15All contents Copyright © 2013, MuleSoft Inc.•92% Business primarily sell to other businesses (B2B)•Diverse size/stage of company•Balanced across many application segments•Balanced across job functions•More heavily weighted by executive decision makers2012 SaaS Integration Survey Key findings. MuleSoftsurvey done in conjunction with THINKstrategies .
  16. 16. Survey Results:Integration is a top barrier to SaaS Adoption16All contents Copyright © 2013, MuleSoft Inc.
  17. 17. MuleSoft – a platform based approach tointegration17YourApplicationAdvantages of CloudHub Platform•Integrate anything, anywhere•Native app user experience•Single instance/multi-tenant platform•Scalable multi-tenant supportAdvantages of CloudHub Platform•Integrate anything, anywhere•Native app user experience•Single instance/multi-tenant platform•Scalable multi-tenant supportAdvantages of MuleSoft Partnership•Integration aligned to your GTM•Flexible packaging into your app•Leverage MuleSoft ecosystem•Customer stickiness “built in”Advantages of MuleSoft Partnership•Integration aligned to your GTM•Flexible packaging into your app•Leverage MuleSoft ecosystem•Customer stickiness “built in”
  18. 18. Recommended ReadingsRunning a SaaS business? (Forbes.com, J.J. Colao)Bessemer’s 10 Laws of being ‘SaaSy’ (SlideShare)18All contents Copyright © 2013, MuleSoft Inc.Integration & Valuation
  19. 19. Why Address Integration Now?19A structured approach to integrationhas major impacts on key SaaSbusiness metricsAll contents Copyright © 2013, MuleSoft Inc.
  20. 20. Public SaaS valuationsAll contents Copyright © 2012,MuleSoft Inc.20Source: Bloomberg, Goldman Sachs, October 2012
  21. 21. What drives SaaS Valuations?All contents Copyright © 2012,MuleSoft Inc.21Source: Goldman Sachs Investment BankSaaS EV as multiple of Revenue2X – 15X
  22. 22. Key Valuation DriversAll contents Copyright © 2012,MuleSoft Inc.22Source: Goldman Sachs• Incremental 2% increase = 20% higher multiple• Incremental 2% increase = 28% higher multiple• Customer Retention• Upsell/ Add-ons• Billings Growth• Customer Acquisition Costs (CAC)• Total Available Market (TAM)• S&M Investment & Efficiency• Highly sensitive to Churn/Upsell• Bigger is better• Incremental 20% increase = 2% lower multiple• Drives CAC
  23. 23. Impact of Packaged “App” IntegrationsAll contents Copyright © 2013, MuleSoft Inc.Metric Baseline With IntegrationBillion $ or Million User Markets withclear ‘entry points’Renewals + Add-Ons should be>100%Total AvailableMarketCustomerRetentionCAC RatioLive MRR + New/Add-On – Churn =CMRRCMRRProvides ClearExpansion PointsIntegration = StickinessAdd-On’s increase CMRRNo impact on S&M SpendCreates Add-on SKUReduces churnMeasured by Time to Live, CustomerSupportCustomerSatisfactionFaster TTL (Land)With Upsell Options (Expand)
  24. 24. 3 Ways To Increase Your Company Valuation24All contents Copyright © 2013, MuleSoft Inc.Packaged SaaS Integration Impact to Valuation1 Provide integration as an add-on to your serviceIncrease your MRRIncrease your multiple2 Reallocate internal resourcesto core applicationDecrease your CACIncrease your multiple3 Standardize services on anintegration platformAccelerate time to live,reduce customer churnIncrease your multiple
  25. 25. MuleSoft: Approved by IT Buyers25YourApplication3,500+ on premise & 10,000+ cloud global deployments•SaaS Integration•Enterprise Integration•SOA Architecture•Legacy System modernization3,500+ on premise & 10,000+ cloud global deployments•SaaS Integration•Enterprise Integration•SOA Architecture•Legacy System modernization
  26. 26. Questions?26All contents Copyright © 2013, MuleSoft Inc.Give us feedback on this webinar:Use the “Feedback” button above
  27. 27. Next Steps27All contents Copyright © 2013, MuleSoft Inc.Contact Us forKPI CalculatorContact Us forKPI CalculatorDownload SaaSIntegration SurveyDownload SaaSIntegration Surveyinfo@mulesoft.comwww.mulesoft.com/cloudhub
  28. 28. Thank you!28All contents Copyright © 2013, MuleSoft Inc.

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